Resurrected Deals

November 17, 2023

by a searcher from Regent College in Bloomington, MN, USA

Have many people have seen owners come back to the table in the past 6 months who had walked away with differing valuations? As economic realties catch up with sellers, and their growth may not be what they thought it would be coming out of 2022 hopefully others are seeing re-engagement from deals once thought dead.

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Reply by a lender
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA

I have had a number of clients call me recently with deals they lost to competition and that are now coming back because the buyers did not move forward. Once could assume that might partially be due to price and market conditions. We have also seen a number of deals get repriced recently that were under LOI due to some declining market conditions. Not sure if this answers your question, but we were not really seeing much of this a year ago and I feel like I have been seeing and hearing this a lot more from our clients in the last 3 months.

Reply by a searcher
from University of Richmond in New York, NY, USA

We've seen a handful of opportunities that we either passed on or lost out to higher bids come back to us in the last ~3 months. The former tended to be either lower quality opportunities or deals where the sellers had unrealistic valuation expectations. The latter tended to be the sellers/their advisors accepting overbids where the buyers were ultimately not able to secure the financing. In any event, it's a good idea to probe the broker for why the prior process busted (even if they'll likely blame the buyer regardless).

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